The Shanghai municipal government has bought 10 electric vehicles as part of a government-sponsored project to encourage the use of energy-saving cars.

The Roewe E50 model, which was selected for the first batch of EVs for official use in Shanghai, is a domestic battery-driven mini car developed by Shanghai Automotive Industry Corp, or SAIC.

The car has advanced energy-saving and safety technologies to ensure zero emissions. Recharging stations have been installed outside government buildings.

With a national deduction of 54,000 yuan ($8,811) on EV subsidies, local authorities spent 180,900 yuan for each car in May, said Shen Ling, a manager of SAIC’s new energy department.

SAIC has prepaid the deduction, however, given that the national policy expired by the end of 2012 and renewed incentives have yet to be released, Shen said.

But the municipal government did not enjoy the up to 40,000 yuan rebate it extends to individual EV buyers in Shanghai.

The E50 was handed over to the city’s first individual buyer in January.

An individual customer in Shanghai may benefit from a cash rebate worth 60,000 yuan from the central government, and another 40,000 yuan courtesy of the Shanghai municipal government, as well as exemption from a license plate fee, which is worth more than 80,000 yuan.

Wan Gang, minister of science and technology, said in May that future financial backing of EVs will shift to supporting the R&D efforts of major automakers, rather than simply offering discounts to consumers when they buy the vehicles.